Cross-country comparisons of costs: the use of episode-specific transitive purchasing power parities with standardised cost categories
International comparisons of healthcare costs are growing in importance for a number of different applications. The use of common approaches to converting costs such as GDP purchasing power parities (PPPs) often does not reflect price differences in healthcare in an appropriate manner. This means that new approaches need to be explored. The objective of this paper is to demonstrate the feasibility of using episode-specific PPPs (ESPPPs) to facilitate cross-country comparisons of healthcare costs and to compare this approach with other common approaches to conversion. Costs for five care episodes from hospitals in eight European countries were obtained from the EU HealthBASKET project. ESPPPs were created by using Fisher-type PPPs in combination with the Eltetö-Köves-Szulc method at the episode level. Differences in ESPPPs among the five care episodes were discussed and compared with other common conversion approaches. We found that ESPPPs-reflected prices and resource use more accurately than conventional conversion approaches such as GDP PPPs and medical care PPPs. This was particularly evident for labour-intensive care episodes in which other conversion approaches revealed problems in the way that labour input had not been considered appropriately. The results demonstrate that ESPPPs are preferable to other common conversion approaches when international healthcare cost comparisons are performed. Copyright © 2008 John Wiley & Sons, Ltd.
Volume (Year): 17 (2008)
Issue (Month): S1 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Linna, Miika & Hakkinen, Unto & Magnussen, Jon, 2006. "Comparing hospital cost efficiency between Norway and Finland," Health Policy, Elsevier, vol. 77(3), pages 268-278, August.
- Oliver Tiemann, 2008. "Variations in hospitalisation costs for acute myocardial infarction - a comparison across Europe," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S33-S45.
- Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
- Gerdtham, Ulf-G. & Jonsson, Bengt, 1991. "Conversion factor instability in international comparisons of health care expenditure," Journal of Health Economics, Elsevier, vol. 10(2), pages 227-234, July.
- Martine M. Bellanger & Zeynep Or, 2008. "What can we learn from a cross-country comparison of the costs of child delivery?," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S47-S57.
- Drechsler, Laszlo, 1973. "Weighting of Index Numbers in Multilateral International Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 17-34, March.
- Sarah Wordsworth & Anne Ludbrook, 2005. "Comparing costing results in across country economic evaluations: the use of technology specific purchasing power parities," Health Economics, John Wiley & Sons, Ltd., vol. 14(1), pages 93-99.
- Jonas Schreyögg & Tom Stargardt & Oliver Tiemann & Reinhard Busse, 2006. "Methods to determine reimbursement rates for diagnosis related groups (DRG): A comparison of nine European countries," Health Care Management Science, Springer, vol. 9(3), pages 215-223, August.
- Tom Stargardt, 2008. "Health service costs in Europe: cost and reimbursement of primary hip replacement in nine countries," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S9-S20.
- J. Schreyögg & T. Stargardt & M. Velasco-Garrido & R. Busse, 2005. "Defining the “Health Benefit Basket” in nine European countries," The European Journal of Health Economics, Springer, vol. 6(1), pages 2-10, November.
- Richard Grieve & Richard Nixon & Simon G. Thompson & Charles Normand, 2005. "Using multilevel models for assessing the variability of multinational resource use and cost data," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 185-196.
- David Epstein & Anne Mason & Andrea Manca, 2008. "The hospital costs of care for stroke in nine European countries," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S21-S31.
- Kevin Schulman & Jennifer Burke & Michael Drummond & Linda Davies & Per Carlsson & Jans Gruger & Anthony Harris & Carlo Lucioni & Ramon Gisbert & Ted Llana & Eric Tom & Bernard Bloom & Richard Willke , 1998. "Resource costing for multinational neurologic clinical trials: methods and results," Health Economics, John Wiley & Sons, Ltd., vol. 7(7), pages 629-638.
- Lee Rivers Mobley & Jon Magnussen, 1998. "An international comparison of hospital efficiency: does institutional environment matter?," Applied Economics, Taylor & Francis Journals, vol. 30(8), pages 1089-1100.
- C. Daniel Mullins & Mirko Sikirica & Viran Seneviratne & Jeonghoon Ahn & Kasem S. Akhras, 2004. "Comparisons of Hypertension-Related Costs from Multinational Clinical Studies," PharmacoEconomics, Springer Healthcare | Adis, vol. 22(15), pages 1001-1014.
- Reinhard Busse & Jonas Schreyögg & Peter C. Smith, 2008. "Variability in healthcare treatment costs amongst nine EU countries - results from the Health BASKET project," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S1-S8.
- Jonas Schreyögg, 2008. "A micro-costing approach to estimating hospital costs for appendectomy in a Cross-European context," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S59-S69.
When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:17:y:2008:i:s1:p:s95-s103. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.